"Oilmeal exports from the country are unlikely to touch 1997-98 level as the US and Chinese soymeal are expected to rule lower than Indian prices," SEA sources said.

During the first quarter of this year, oilmeal exports were 5.09 lakh tonnes against 4.83 lakh tonnes a year ago. Of this, soyameal comprised 4.25 lakh tonnes -- comparatively higher than 1.98 lakh tonnes during the same period last year.

"There is a good demand for soymeal in South Korea and Japan. But Indian oilmeals are priced higher," they said.

Indian oilmeals were being sold at around $140 a tonne against $120 by other sources such as the US and China. "China and US are offering longer credit for these purchases," the sources said.

Oilmeal from Latin America, too, was cheaper than Indian prices in view of arecord soyabean crop this year. "Against this, our oilseeds prices are higher," the sources said.

In view of falling shipments and lack of competitiveness in exports, Indian extractors are looking inward to increase domestic consumption.

According to SEA data, exports of other oilmeals such as rapeseed, groundnut, rice bran and sunflower extracts have been lower in the first quarter compared with shipments last year.

During the first quarter, 69,030 tonnes of rapeseed extract was shipped against 2.21 lakh tonnes last year. Groundnut extract shipments slid to 1,808 tonnes against 27,017 tonnes last year and that of rice bran was nil compared with 6,712 last year.

Sunflower extract exports were down to 880 tonnes against 4,876 tonnes in the first quarter of last year, while cotton seed extract shipments was up to 11,797 tonnes against 4,596 tonnes.

Asked about the increased offtake of Indian soymeal by Japan this year in view of its prices being more competitive than other destinations, SEA sourcessaid it could not be ascertained as these exports were being made from Singapore after firms there purchase from India. Commerce ministry sources said reports of increased offtake of Indian soymeal by Japan could be true.